ARTICLES

Optimism high in Bulgaria

Assetz News, 31st May 2006

Accession to the European Union is inevitably going to play a central role in the future of property investment in Bulgaria.

Bulgarian property is already proving popular with investors looking for long-term capital growth, but there is no doubt that accession to the EU will encourage many more to purchase properties in the country with a view to capitalising on the extensive house price growth that will presumably ensue.

The road to EU membership has certainly been a bumpy one for Bulgaria and reports on its progress have let officials know that there is still some work to do.

Despite this, financial experts in the country are seemingly confident that everything is on track to join on January 1st next year. The implications for property investment could be immense.

Speaking to the Sofia News Agency, Mr Maxim Behar, head of the Bulgarian Business Leader Forum, said: "I am even more optimistic than before. I am sure that we are going to join the EU on January 1st 2007. The tone of the monitoring report is very positive."

The news agency reports that one of the chief roles of the Bulgarian Business Leader Forum is to encourage transparency and promote good ethics in the Bulgarian business sphere. These issues are all central to Bulgaria's accession to the EU and there appears to be a great deal of confidence that things are moving in the right direction.

As EU accession draws closer, the Bulgarian property market is also beginning to benefit from increased access. More and more airlines are now taking advantage of high demand from investors, with particular interest being shown in the Black Sea resorts and around the ski slopes in Bansko, Borovets, Pamporovo.

The Bulgaria News Network reports that Bulgaria Air has now launched summertime flights from the Black Sea town of Burgas to London and it is a move that makes it even easier for investors to investigate their chosen areas.

Zlatin Sarastov, CEO of Bulgaria Air, mentioned that British nationals are now choosing Bulgaria as a destination for their main summer vacation, while others are looking to buy coastal properties.

It is thought that national carriers will soon run flights between Burgas and Madrid as well as Burgas and Dublin, while Bulgaria Air already has a couple of routes between European capital cities and Varna.

Bulgarian officials are continuing to work on the country's weaker areas and it is looking increasingly like things will be in place for accession to the EU early next year.

Because it offers diverse opportunities for property investment ranging from ski chalets to beach houses, there is a great deal of hope that growth in the Bulgarian property market will be rapid once membership is achieved. With numerous airlines now offering flights to the country for competitive prices, it would seem that the foundations for this expansion are well and truly in place.